KARACHI: The Departmental Audit Committee (DAC) of Customs has underlined the need of strenuous efforts on the part of Appraisement Karachi to effect recovery of long outstanding government dues of Rs1.127 billion.

The DAC highlighted blockade of government revenue of Rs430.206 million, which was recoverable from various organizations in 20 cases since 1998-99. DAC noted the department did not take effective steps for realization of the same. In seven out of total 20 cases which involved arrears of Rs22.0 million, even notices for recovery were not found issued. Regarding remaining 13 cases, only first notice was issued with no follow-up action.

The Appraisement Karachi responded that this amount was recoverable from various government organizations and the actual amount is Rs952.7 million instead of the amount of Rs 430.2 million pointed by the Audit. Appraisement Karachi added that substantial amount involved had been recovered or vacated.

The Audit also took up non-recovery of government dues from the registered persons of Rs384.303 million which were outstanding in 89 cases against registered persons who were running their industries and business. The outstanding government dues could be recovered by adjustment from their refund claims or imposing embargo or attachment of their industry as provided in the rules but no such action was taken. The department failed even to issue recovery notices in 14 cases involving government dues of Rs181.122 million.

Appraisement Karachi responded that the amount was recoverable from private sector organizations. Substantial amount had been recovered and a large chunk had been vacated by the courts.

Audit notes that the study revealed that government dues of Rs313.057 remained un-recovered from 166 commercial importers. It was observed that insufficient action was taken to recover the arrears as much as no notice was issued in 51 cases involving revenue of Rs140.459million while the remaining eases were not pursued for recovery for years.

Appraisement Karachi responded that the amount was recoverable from various private sector organizations. Substantial amount had already been recovered while Collectorate is pursuing recovery in the remaining cases.

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